Dutch Auction Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest from shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following table: a. What is the average price that the company will pay to buy back shares? b. Is the offer oversubscribed or undersubscribed? c. What percentage of the shares offered by stockholders that will be repurchased? Data table a. The average price that the company will pay to buy back shares is $ (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet. Total Shares Tendered Offer Price $54.00 210,000 $54.10 340,000 $54.20 490,000 $54.30 655,000 $54.40 800,000 $54.50 940,000 Print Done
Dutch Auction Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest from shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following table: a. What is the average price that the company will pay to buy back shares? b. Is the offer oversubscribed or undersubscribed? c. What percentage of the shares offered by stockholders that will be repurchased? Data table a. The average price that the company will pay to buy back shares is $ (Round to the nearest cent.) (Click on the following icon in order to copy its contents into a spreadsheet. Total Shares Tendered Offer Price $54.00 210,000 $54.10 340,000 $54.20 490,000 $54.30 655,000 $54.40 800,000 $54.50 940,000 Print Done
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Dutch Auction Weeks ago, the consumer products giant, Unilever, announced plans to buy back 700,000 shares using a Dutch auction. Since then the company has solicited interest from
shareholders by asking how many shares they would tender at different prices. The information they collected appears in the following table:
a. What is the average price that the company will pay to buy back shares?
b. Is the offer oversubscribed or undersubscribed?
c. What percentage of the shares offered by stockholders that will be repurchased?
Data table
a. The average price that the company will pay to buy back shares is $
(Round to the nearest cent.)
(Click on the following icon in order to copy its contents into a spreadsheet.
Total Shares Tendered
Offer Price
$54.00
210,000
$54.10
340,000
$54.20
490,000
$54.30
655,000
$54.40
800,000
$54.50
940,000
Print
Done
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